World Bank approves loan to aid flood recovery

World Bank approves loan to aid flood recovery

WASHINGTON -- The World Bank's Board of Executive Directors approved a EUR 227.5 million loan (USD 300 million) for the Floods Emergency Recovery project for Serbia.

It will be used primarily in the sectors of energy, agriculture and infrastructure, the World Bank said on Saturday.

The project focuses on priority sectors identified in the Recovery Needs Assessment conducted by the Serbian government in June and July, with the support of the European Commission, United Nations Development Program (UNDP), and the World Bank.

In particular, the project will fund the dewatering of Serbia's largest mine, the Tamnava West Open Pit Mine - which is still submerged and unable to provide two-thirds of the fuel supply for the Kolubara power plant - and help finance substitute power sources.

In the agriculture sector, the project will provide direct support to farmers in the flood hit areas by ensuring the income they need to invest in agricultural production.

The project will also help the country to be better prepared for possible new disasters, by financing the repair of critical flood prevention infrastructure.

"We cannot leave Serbian families in the cold this winter, so ensuring a reliable power supply is the top priority for Government and for us," the release quotes Ellen Goldstein, World Bank Country Director for Southeast Europe, as saying.

Task Team Leader for the project Claudia Vasquez said that in the power sector, the project will support electricity imports (EUR 120 million) in order to improve power supply and avoid power crisis, especially over the first post-flood heating season this winter.

In the...